IMF: Armenia’s government budget deficit ratio to GDP to be below 3% in 2012

30.09.2010 14:17
IMF: Armenia’s government budget deficit ratio to GDP to be below 3% in 2012

YEREVAN, September 30. /ARKA/. Ratio of Armenia’s government budget deficit to gross domestic product may be lower than 3% in 2012, Guillermo Tolosa, IMF resident representative in Armenia, said Wednesday at a news conference.

Answering the question ARKA News Agency correspondent put to him, Tolosa said that the ratio of deficit to GDP would be below 5% this year and lower than 4% in 2011.

He said that the IMF finds this gradual approach is in tune with the government’s policy and international principles based on the best implementation of tax and budget policy.

The IMF resident representative thinks that sharper dynamics could have adverse impacts on the recovery of the economy after the crisis, while more sluggish dynamics could put state debt repayment stability at risk.

Hence, the chosen golden mean is the best decision.

According to statistical reports, Armenia’s government budget revenue grew by AMD 87.9 billion in Jan-Aug 2010 to 503.3 billion, and expenditure by AMD 35.3 billion to AMD 529.8 billion.

It means the government handled 97.5% of the planned revenue and 83.2% of the planned expenses.

The budget deficit amounted to AMD 26.5 billion in Jan-Aug 2010 instead of the AMD 120.4 billion planned in the nine-month program and against actual indicator of AMD 79 billion at the same period of the previous year.

The 2010 government budget was passed by the National Assembly on December 10, 2009.

In this budget, the revenue is planned at AMD 742 billion, expenditure at AMD 935.5 billion and deficit AMD 193.4 billion. ($1 = AMD 361.76). -0-


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